12580-12584

INSURANCE CODE
SECTION 12580-12584




12580.  Before investing in any security or making or issuing any
mortgage policy thereon or participation certificate therein, every
mortgage insurer shall cause an appraisement of the real property
with improvements thereon securing the same to be made by a competent
person appointed as appraiser by resolution of the board of
directors of the insurer.



12581.  Such appointment of appraiser shall not be valid or
effective unless and until approved by both the commissioner and the
Commissioner of Financial Institutions. Such appointment shall be
revocable at any time by either the commissioner or the Commissioner
of Financial Institutions should they or either of them consider said
appointee incompetent or any appraisals made by said appointee
improper, after a hearing upon due notice thereof first given to the
appraiser and the appointing insurer.



12582.  Such approved appraiser shall examine and appraise the
property and determine its fair market value without deducting
therefrom the amount of any outstanding and unpaid taxes, bonds or
assessments. He shall thereafter make his verified report to the
mortgage insurer.



12583.  Such appraiser's report shall state whether such property is
improved or productive and shall contain a general statement
showing:
   (a) The character of the property appraised.
   (b) The purposes for which it is being used.
   (c) The kind and condition of the improvements.
   (d) The fair market value of each parcel of land and of the
improvements thereon.
   (e) Such other information as is ordered by the commissioner or
the Commissioner of Financial Institutions.




12584.  Reports of appraisals thus made by an approved appraiser
shall, in the absence of any negligence, gross error, fraud or
collusion, be conclusive as to the facts therein stated.